The financial technology market is one of the fastest-growing in the world. In the article, we have highlighted 5 key trends driving the FinTech industry that will shape its future.

What's Happening in the FinTech Market Now

FinTech is a term used to describe companies operating in the financial technology sector. Most often, these are small startups developing technological solutions in online and mobile payments, big data, management, etc.

Here are some interesting facts that demonstrate the industry's prospects:

● By 2022, the estimated value of the fintech industry is $179 billion, and by 2024, it is expected to reach $213 billion;

● The global financial technology market is expected to grow at an average of 23.58% per year from 2021 to 2025 (Research and Markets data);

● There are about 30,000 fintech startups in total. Moreover, their number more than doubled from 12,000 to 30,000 between 2020 and 2022;

● 10 out of the 20 largest financial companies by market capitalization were founded in America;

● The largest market for consumer adoption of financial products is China (87%), while the lowest is Japan (34%).

Analyzing the situation in the financial technology market, we have identified some trends and an approximate development of it:

1. Companies are automating their processes to the maximum

To reduce service costs and increase the efficiency of their teams, many financial enterprises are turning to robotic process automation (RPA). This "software robotics" involves automating repetitive routine tasks that do not necessarily require human intervention. For example, RPA is used for collecting data on client behavior, analyzing accounts, gathering feedback, redirecting customer complaints, preventing fraud, and more. RPA includes chatbots that can automatically process customer requests at any time of day.

According to Gartner, 80% of leading projects in the banking and insurance sectors have already implemented RPA in their business or plan to do so in the near future. By the way, such automation can reduce a company's operating expenses by approximately 30%.

It is also worth mentioning the increased demand for regulatory technologies or RegTech. This tool provides accuracy, flexibility, speed, and efficiency in meeting regulatory requirements and other regulatory measures. In other words, Regtech solutions use cloud technologies, machine learning, and big data analytics to identify, prevent risks, and monitor compliance with rules/legislation.

2. Data Security as a Top Priority

As of 2021-2022, cyberattacks are the number one risk to the global economic system. In just 2020-2021, the number of cyberattacks increased by 1318%, and according to UpGuard, almost 25% of all phishing attacks are targeted at the financial sector.

We have previously written about the types of attacks most commonly encountered in partner projects in the article Data Security of Network Companies.

As part of the cybersecurity strategy, organizations utilize firewalls, develop specialized and secure software, apply data input patterns and frameworks, connect to DDoS protection service providers, use programs to protect against spam and phishing,log critical parts of the project's algorithm in blockchain.

Additional security measures actively used for protection include multi-factor (e.g., push notifications with code) and biometric authentication (allows users to access the system using fingerprint, face, or voice). Also, major players in the banking sector are working on behavioral biometrics — analyzing the physical and cognitive behavior of the user, from mouse activity to keystroke speed.

3. Integration of financial services into non-financial projects

Interest in embedded finance and embedded payments has noticeably increased - we are talking about integrating financial services into non-financial websites and applications.

For example, when a consumer can quickly apply for credit directly on the same e-commerce platform to pay for a large purchase.

By providing such financial services to their clients, non-financial companies increase loyalty to their brand. This also affects the average check and overall consumer spending of clients.

4. Growing Interest in Blockchain and Cryptocurrencies

Since 2015, interest in blockchain and digital currencies has been consistently growing. This is confirmed by statistics:

● According to research by the University of Cambridge, the number of users has grown from 25 million to 100 million people (almost 2% of the world's population);

● 90% of American and European banks are investing in blockchain, using it as a tool to strengthen their security system;

● 77% of active financial institutions plan to transfer some business processes to blockchain in the next 3-5 years;

● Leading economic powers are preparing to launch a Central Bank Digital Currency (CBDC) system.

Based on our observations, these technologies definitely have a positive impact on expanding the client base and reaching wider audiences. Additionally, cryptocurrencies have completely transformed the approach to network marketing investments.

The article about why the popularity of crypto is growing and how to implement it in your network project was written in How cryptocurrencies change the approach to MLM investing

5. The financial sector is becoming more socially responsible and "green"

Today, social responsibility and "sustainability" are key indicators of an organization's progressiveness, adding greater weight and value to the business.

For detailed information on what this concept represents, read the article The Role of Social Responsibility in Network Business Promotion.

The highest concentration of "sustainable" financial companies is found in Switzerland, Sweden, Spain, and Singapore. For example, according to our observations, network investment projects most often:

● create a "green" working environment. This involves implementing electronic document management, waste sorting and reduction, water and electricity consumption reduction, the use of alternative energy sources, etc.;

● sponsor and provide information support for social projects;

● create corporate funds and develop various charitable programs;

● support employee health programs;

● hold remote meetings with foreign colleagues, reducing the number of business trips, especially air travel.

Overall, the general vector of development of the financial industry consists of increasing the efficiency of product work, teams, ensuring data security, automating operational processes, and reducing the operational costs of companies.

Do you want to bring to life the idea of your startup or develop a company in the FinTech direction? The specialists of the FlawlessMLM team will provide you with a free consultation and help you choose the optimal technical solution. Contact our manager in the website chat and learn more about solutions for your business.

TOP 5 fintech trends in network marketing